Personal Finance

The best-kept secret for buying your first home

Down payment assistance can bridge the gap between your savings and the amount needed to buy a home — if you know where to look. Here's how it works

ByDeborah Kearns

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Published 16 hours ago

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Coming up with a home down payment is often the biggest obstacle buyers face when purchasing a home. It can take years to save, putting potential buyers’ homeownership aspirations farther out of reach.

Down payment assistance (DPA) programs can help fill the void, but many buyers don’t know these programs exist or how to use them.

According to Down Payment Resource’s (DPR) Homeownership Program Index, there were 2,619 homebuyer assistance programs in the U.S. in the fourth quarter of 2025, up 6% over a year ago, with an average benefit of $18,000 per borrower. 

As of December, the national median existing-home sales price was $405,400, according to the National Association of Realtors (NAR). Meanwhile, the average 30-year fixed mortgage rate remains above 6%, leaving many buyers struggling to come up with ample cash for a down payment and closing costs. 

Depending on the home loan you choose, you might have to come up with 3% to 5% of a home’s purchase price for a down payment, and an additional 2% to 6% of the loan amount in closing costs.

“Affordability will remain the defining challenge for homebuyers in 2026, and down payment programs are one of the most practical tools lenders have to address it,” said DPR Founder and CEO Rob Chrane. “When DPA lowers loan-to-value ratios and helps cover upfront costs, it doesn’t just improve borrower eligibility; it improves loan quality.”

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